The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how QuinStreet (NASDAQ:QNST) and the rest of the advertising & marketing services stocks fared in Q4.
The sector is on the precipice of both disruption and growth as AI, programmatic advertising, and data-driven marketing reshape how things are done. For example, the advent of the Internet broadly and programmatic advertising specifically means that brand building is not a relationship business anymore but instead one based on data and technology, which could hurt traditional ad agencies. On the other hand, the companies in the sector that beef up their tech chops by automating the buying of ad inventory or facilitating omnichannel marketing, for example, stand to benefit. With or without advances in digitization and AI, the sector is still highly levered to the macro, and economic uncertainty may lead to fluctuating ad spend, particularly in cyclical industries.
The 7 advertising & marketing services stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 4% while next quarter’s revenue guidance was 0.7% below.
Luckily, advertising & marketing services stocks have performed well with share prices up 14.1% on average since the latest earnings results.
Founded during the dot-com era in 1999 and specializing in high-intent consumer traffic, QuinStreet (NASDAQ:QNST) operates digital performance marketplaces that connect clients in financial and home services with consumers actively searching for their products.
QuinStreet reported revenues of $287.8 million, up 1.9% year on year. This print exceeded analysts’ expectations by 4.2%. Overall, it was a stunning quarter for the company with a beat of analysts’ EPS estimates and revenue guidance for next quarter exceeding analysts’ expectations.
QuinStreet Total Revenue
QuinStreet delivered the weakest full-year guidance update of the whole group. Interestingly, the stock is up 9.8% since reporting and currently trades at $12.15.
With thousands of digital and traditional displays lighting up America’s highways, city streets, and airports, Clear Channel Outdoor (NYSE:CCO) operates billboards, street furniture, and airport displays, connecting advertisers with millions of consumers across the US.
Clear Channel Outdoor reported revenues of $461.5 million, up 8.2% year on year, outperforming analysts’ expectations by 2.8%. The business had a stunning quarter with EPS in line with analysts’ estimates and a solid beat of analysts’ revenue estimates.
Clear Channel Outdoor Total Revenue
However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $2.38.
Born from the 2020 merger of Rubicon Project and Telaria, Magnite (NASDAQ:MGNI) operates the world’s largest independent sell-side advertising platform that automates the buying and selling of digital advertising inventory across all channels and formats.
Magnite reported revenues of $205.4 million, up 5.9% year on year, falling short of analysts’ expectations by 2.8%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EPS estimates.
Interestingly, the stock is up 15.4% since the results and currently trades at $13.81.
Often appearing as those “You May Also Like” or “Recommended For You” boxes at the bottom of news articles, Taboola (NASDAQ:TBLA) operates a digital platform that recommends personalized content to users across publisher websites, helping both publishers monetize their sites and advertisers reach target audiences.
Taboola reported revenues of $522.3 million, up 6.4% year on year. This result lagged analysts’ expectations by 2.9%. Overall, it was a slower quarter as it also produced a significant miss of analysts’ revenue estimates and revenue guidance for next quarter slightly missing analysts’ expectations.
Taboola achieved the highest full-year guidance raise among its peers. The stock is up 7.4% since reporting and currently trades at $3.37.
Originally launched as a way to make grocery shopping more rewarding for budget-conscious consumers, Ibotta (NYSE:IBTA) is a mobile shopping app that allows consumers to earn cash back on everyday purchases by completing tasks and submitting receipts.
Ibotta reported revenues of $88.53 million, down 10% year on year. This number beat analysts’ expectations by 6.5%. It was a strong quarter as it also logged an impressive beat of analysts’ revenue estimates and revenue guidance for next quarter exceeding analysts’ expectations.
Ibotta had the slowest revenue growth among its peers. The stock is up 11.6% since reporting and currently trades at $22.89.
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